RBI lowers cash withdrawal limit from Jan-Dhan accounts to Rs 10,000 per month
Reserve Bank of India (RBI) headquarters in Mumbai, Maharashtra, India. Image Source: Reuters
In an attempt to protect the innocent farmers and rural account holders of Pradhan Mantri Jan-Dhan Yojana (PMJDY) scheme from money laundering and legal consequences, the Reserve Bank of India (RBI) on Tuesday announced restrictions on cash withdrawal limit to Rs 10,000 per month.
"With a view to protect the innocent farmers and rural account holders of PMJDY from activities of money launders and legal consequences under the Benami Property Transaction and Money Laundering laws, it has been decided to place certain limits, as a matter of precaution, on the operations in the PMJDY accounts funded through deposits of Specified Bank Notes (SBNs) after November 09, 2016," RBI said in a notification.
The limit on cash withdrawal has come into effect after Prime Minister Narendra Modi on November 8 demonetise Rs 500 and Rs 1,000 notes as legal tender in an attempt to control black money, terrorism and corruption.
"As a temporary measure, the banks are advised to observe the following in respect of the PMJDY accounts that is fully know your customer (KYC) complaint account holders may be allowed to withdraw Rs 10,000 from their account, in a month," it added.